Our Digital Value Dilemma


We’re not in the technology industry, but it’s clear technology is important to ALL industries, including financial services. As you evaluate your business model to meet new regulations, you should also consider how technology can make those changes more effective.  

Recently, I read an article published by CISCO about digitization and the Global Center for Digital Business Transformation’s 2015 study on digital disruption. Digitalization, according to the article, refers to upgrading an office by creating a website or investing in cutting-edge technologies. By evaluating your own digitalization, you ultimately will be able to improve your client experience, a key differentiator that can set you apart from competitors. Advisors and financial planning firms that master this idea will stand a step above the rest.


The Cost of Waiting

The risk of NOT thinking digitally may prove costly. The Global Center’s study predicts four of the top 10 industries will be replaced in the next three years due to “digital disruption” – when a technological advancement makes an industry nearly obsolete. For example, film cameras were replaced by digital cameras, and even digital cameras are now being replaced by smartphone cameras. 

Failing to be up to speed with the digital world will result in being passed by those who have the technological advances. Our clients are bombarded by digital advertising and notifications, so we must remain at the forefront of their minds in order to capture market share. Only through a process of effective digitalization will our business be able to successfully reach clients and remain competitive. 

Government regulation forces us to look at our business differently now, but technology can provide the tools we need to catapult our business to a higher level. As you evaluate changes to your practice, ask yourself: 

  • How can I become more technologically efficient as I market my services and products?  
  • More importantly, how can digitalization improve my client experience?  

 Both will help you increase your market share in the future. 


Winning Strategy

Rethink your business model and client experience in order to improve. Don’t allow new regulation to be the disruptor that solely shapes your business – use technology to make it more valuable to your clients and prospects.  


About the Author

Mike McGlothlin is the Executive Vice President of Annuities at Ash Brokerage. His strength is helping advisors become more efficient and effective in their businesses. He and his team provide income-planning solutions focused on longevity and tax efficiency, and they also assist advisors with entering defined-benefit termination planning and structured settlement markets.




Innovation and Insurance


On Oct. 21, 1879, Thomas Edison invented the first commercially viable light bulb. It lasted 13.5 hours … but soon, the average bulb lasted 150 hours, and within 10 years, commercial bulbs glowed for 1,200 hours. The speed of improvement on Edison’s commercial bulb was incredible. 

Today, technology and communication are the new light bulb. Google, Apple and Microsoft have changed the way we live, communicate and do business. However, the insurance industry isn’t catapulting like other industries with its speed of innovation. Why? Is it because we’re full of mature carriers and distribution? It doesn’t have to be that way, does it?

We have to look at new opportunities to expand and, at the same time, go back to our roots. Only 43 percent of Americans own life insurance outside of group contracts. Of that 43 percent, 70 percent believe they are under-insured. Why are we not addressing our own clients? What level of service are we providing to our existing clients?  

Richard Branson started Virgin Airlines based on a bad service experience. The airline industry hasn’t been the same since then. Which one of your clients will impact your business by leaving you, challenging you or becoming your competitor?

I challenge all distributors in our industry to force innovation. We can’t continue to help Americans at the level they need without significant change. It requires investment, commitment and vision. Bringing new people into the business is only part of the solution; we have to change the way those new people interact with their clients. Within 10 years, we have to distribute products in a new way that can reach more people and grow, just like Edison’s commercial light bulb. 

The Bottom Line: Innovators like Thomas Edison and Richard Branson changed the way we live. Our industry must also change so Americans can continue to thrive after catastrophic events. The light bulb changed 10 fold in 10 years; we have to do the same.   


innovation change technology